Rising Health Insurance Costs for Employer-Sponsored Plans
The cost of health insurance for employer-sponsored plans has increased, according to a recent survey by the Kaiser Family Foundation (KFF). The average cost for individual plans has risen to $9,804, and family coverage averages $28,303—an increase of 5% from the previous year.
This rise in premiums reflects a worrying trend for both employees and employers. Employees are now contributing approximately $1,672 towards individual plans, with employers covering the remaining $8,132. For family plans, employee contributions average $7,471, while employers pay $20,833. Drew Altman, KFF President and CEO, voiced concerns about the increasing healthcare costs, emphasizing a 9% rise in family plan premiums for workers in 2026.
The findings emerged from a comprehensive national survey of over 1,900 employers with at least 10 employees. Over the past 15 years, KFF data has consistently shown an upward trajectory in costs. The average deductible for single coverage has more than doubled since 2011, reaching $1,995 in 2026, indicating a significant shift in health coverage expenses.
Coverage Variations and Deductibles
Employer-sponsored health plans vary widely, often influenced by company size. Notably, 27% of large firms with over 200 employees offer in vitro fertilization (IVF) coverage. This figure fluctuates depending on company size, with only 24% offering it in medium-sized firms (200-999 employees), climbing to 38% in firms with 1,000 to 4,999 employees, and peaking at 47% in firms with more than 5,000 employees. Additionally, coverage for GLP-1 medications for managing Type 2 diabetes and weight saw slight decreases, with 18% of large employers offering it in 2026 compared to 19% the previous year.
| Plan Type | 2026 Employee Cost Share | % Change from Previous Year |
|---|---|---|
| Individual Plans | $1,672 | 16% Increase |
| Family Plans | $7,471 | 9% Increase |
Implications for Insurance Professionals
For insurance professionals, these findings underscore the importance of strategic planning in employer-sponsored benefits. Understanding these trends is crucial for crafting competitive packages that address rising costs while meeting regulatory and compliance demands. Agents, brokers, and underwriters must navigate these complexities, guiding employers to make informed decisions, balance cost distribution, and optimize healthcare benefits offered to employees.